Canopy Growth (NASDAQ:CGC) and CGC stock lost ground in recent days due to the realization by investors that the new cannabis legalization bill being put forward by Senate Majority Leader Chuck Schumer has got a long way to go before it goes to a vote.
When it does, it’s doomed to fail. And, even if it miraculously passes, the states still have a say whether cannabis is legal in their specific jurisdictions.
It’s at times like this where I’m glad to be Canadian. It seems so silly in 2021 to be worrying about recreational cannabis when guns are sold like Pez dispensers, but since I don’t have a dog in this fight, I’ll get back to the subject at hand.
Sure, the pace at which the U.S. federal government is pursuing legalization has got to be frustrating to Canopy shareholders. Still, the reality is that federal legalization will happen because it’s fiscally irresponsible not to do so.
In June, an opinion piece appeared in USA Today that pointed out that the state of New Jersey spends $143 million a year enforcing cannabis prohibition even though the voters voted to legalize cannabis on Nov. 3, 2020.